Rapid ReScore for Mortgage

[Anonymous]

I am self-employed, stated income looking to purchase a new construction home I put a deposit on back in May 2007.  A lot has changed since then.  Mostly the credit scores requirements.  I am ready to put down 10% on home price of $289,770 for a 30 year fixed.  Because the FICO requirements have changed I needed to raise the scores so I paid of 50% of limit on 5 credit cards.  My scores on Mar 6 2008: TU 675, EQ 669, EXP 641 (down slightly from Feb. citing too many inquiries).  The home builder has run my credit 1-2 times per month for 10 months.  Now that I am ready to purchase I am being told that my FICO must be 680.   Today, my scores are TU 656, EQ 683, EXP 658.   (In Nov. 2007 my middle score was TU 712)

Is there hope for a rapid re-score in 30 days from 3-14-08 (date I paid the 50%). 

I have everything else in line with the lender, just need the middle score to be 680. 

Is the lender pulling my credit causing my scores to drop?  

Is there hope that I will reach a 680 in 30 to 60 days with the debt reduction?

Are there any other loans for self-employed, stated? 

If I go stated, will the fact that my tax return shows that I didn't make more than $10,000 matter (gross was $45,000); this year my gross is $65,000. 

[ShanetheMortgageMan]

Is the lender pulling my credit causing my scores to drop?  Most likely, yes.  "Like" inquiries within 14 days are treated as 1 when it comes to credit scoring, but anymore than that can definitely bring scores down.  1-2 times a month for 10 months straight is absolutely ridiculous.

Is there hope that I will reach a 680 in 30 to 60 days with the debt reduction?  Most likely, again, yes.  You only need 22 points on your XPN score to get there, and I'm sure the higher utilization had an impact on bringing the scores down.  Any inquiries on your credit you did not authorize you might want to dispute with the credit report agencies as well.

Are there any other loans for self-employed, stated?  These loan programs are getting far & few between, rumors have it that Fannie Mae & Freddie Mac are stopping buying them altogether, if that happens then that documentation type might be eliminated completely.  Today they are still available though, and some lenders still offer them with a score as low as a 660.

If I go stated, will the fact that my tax return shows that I didn't make more than $10,000 matter (gross was $45,000); this year my gross is $65,000.  Just so you are aware, stated income loans are not designed so you can state income higher than you actually made.  They are designed for you to reduce the amount of documention one must provide in order to obtain mortgage financing.  Each lender can have a slightly different definition of what is acceptable situations for doing a stated income loan, so your loan officer can let you know if your situation fits the program requirements.

[Anonymous]

I was told that credit balances below 35% increase credit scores also. Can this make a bigger difference than 50%?

[Anonymous]

On the last question, I meant to say documented not stated. 

I really appreciate your responses and confirmation that the number of inquiries are ridiculous.  I will try to get those removed.

[Anonymous]

I tested 35% against 50% on the simulator and the result was that paying down to 50% would result in a higher FICO than paying down to 35%.  I'm not sure why that is though. 

Perhaps someone in the know could comment on that.

[ShanetheMortgageMan]

Not sure why it said that paying your balances down to 50% would give you a bigger increase than paying them down to 35%... in my experience the lower you pay revolving balances down to, the higher the score increase is.  I've even experimented with balances at 1-3% utilization and then paying them off to 0%, and an increase happened then as well.

[INFINITI2010]

So if I had my credit ran on 3-2-12 and my EX was 566, TU 603 and EQ 636 and my DTI ratio is 70%.....if I pay all my accounts down to zero balance would that possibly get me up to 640 if a rapid rescore is done?? Trying to get into a house asap since my apartment lease ends on May 14th.

[INFINITI2010]

Oh and I forgot to mention I,ll be paying those balances in full on 3-16-12. Plus i have an open auto loan with NMAC which is in good standing & I pay 1 1/2 times my car note payment just to hammer away at that balance to get it paid off asap!! Any advice would be greatly appreciated!

[MarineVietVet]

---

@INFINITI2010 wrote:
So if I had my credit ran on 3-2-12 and my EX was 566, TU 603 and EQ 636 and my DTI ratio is 70%.....if I pay all my accounts down to zero balance would that possibly get me up to 640 if a rapid rescore is done?? Trying to get into a house asap since my apartment lease ends on May 14th.

---

Hi there. Just want to let you know that you resurrected a 4 year old thread. There's nothing wrong with doing that but be aware that 4 years can be an eternity in the credit world and information that was valid in 2008 might be woefully out of date today.

[Anonymous]

"woefully out of date" is probably a conservative statement. LOL.